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Value added method is also known as:
Product method
Inventory method
Net output method
All of the above
Value-added refers to the additional value to the raw material (intermediate goods) by an organization, using its production activities. It is calculated as the difference between the value of output and the value of intermediate goods. The value-added method is a widely used method for calculating national income as it avoids double counting, which is quite a serious error while estimating national income.
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